Welcome - if you are considering investing in a lot, villa, or condo at Red Frog Resort please do your due diligence!
Welcome - if you are considering investing in a lot, villa, or condo at Red Frog Resort please do your due diligence!
Have your lawyer check for liens against your potential purchase in the public registry. Many red frog real estate properties have undisclosed liens on them with Banco General & Global Bank. Use your own lawyer, not theirs!
Under no circumstances should you purchase a Red Frog Real Estate unit that is not yet built. Only purchase a completed unit. Numerous owners are in lawsuits with Red Frog Management due to missed deadlines and unbuilt units
Do not buy lot 411 or 418 - they are the subject of a 15 year long lawsuit that Red Frog lost.
Denuncia: Red Frog sigue vendiendo fincas propiedad de Tres Cruces de Oro | Critica
The beachfront road was promised to be completed by 2018. If you are OK with the gravel road, that's great, just don't count on it being paved any time soon.
Do not invest in any form of timeshare or "fractional" unit. Red Frog will maintain enough of the shares in your unit so that you will be outvoted in every single aspect of ownership. They will also not let you know who the other fractional owners are.
Find out if the property you are contemplating purchasing is in the homeowners COA or outside the COA. Properties outside of the COA are less desirable because they are subject to punitive maintenance fees that can be increased at anytime by the developer (OGI, Ocean's Group International). Properties outside the COA can also have their access to common areas like the dock, the restaurant, the trails, the Spa cut off without notice. Some owners have even had their electricity cut of without notice. Without a homeowner's organization to protect your rights, you may have few options available to you when things go wrong. Ask to speak with a COA board member for more info on the rules and situation at the resort. Note: There are two COAs - one for the Villas and one for the Cliffs Condos. The Jungle Lodges & The Blue Pearl do not yet have COAs. Beware of imposter board members - a while ago the Resort tried to take over the COA and replace with their own hand picked board, which was judged to be illegal by the Panamanian court system. If you're not sure that you are talking to a real board member, just drop us a line using the comment button and we will put you in touch with the COA.
Do not agree to allow Red Frog (OGI) to hold the title to your property. They will tell you that there are tax benefits to you, especially if you are an American, but beware, that would allow them to take out a loan against your property.
Place any deposit in an escrow account. Do not even consider paying 100% down. Do not be tempted by ludicrous offers of a 15% return of investment. OGI (aka Red Frog Resort) is many many millions of dollars in debt to the banks, the Panamanian government, its employees, the fuel company, lawyers, and others. Do an internet search to see just how much they owe and how many lawsuits they are involved in.
Get a guaranteed electric rate included in your contract. Some owners are paying over $1 per kWh at Red Frog Resort. Local Panamanian rates are more in the neighborhood of 24 cents per kWh.
Do not agree to allow Red Frog to be the exclusive rental agent if you plan on renting your unit. You will likely never see any real rental income. The most you will see is "credits" on your invoice which can only be used to pay outrageously high electric & maintenance bills.
Make sure your contract/deed does not have any restrictions about adding your own solar system. The electric plant is on its last legs. You will want the ability to have solar as a back up if it fails, and also solar will pay for itself in just a few years at the rates being charged by the Resort.
Make sure your contract / deed does not have any restricitons about installing your own water catchment. Red Frog has shut off water to residences and the marina numerous times due to capacity issues over the last few months. They can't provide enough water for everyone's needs, yet seek to restrict your ability to catch your own.
Ask the managment to provide testing reports and certifications from the local health department that the water is safe
Ask for the name, phone number, and email address of the 3 neighbors either side of the property that you are looking at and contact them. Don't let anyone tell you it is a privacy issue. Red Frog management will not divulge who your neighbors and fellow owners are for a reason! Or perhaps just walk around without a realtor and speak with folks. Ask them how they feel about their investment at Red Frog.
Ask to see the failed sewage treatment plant, the ancient solar farm and the undersized water catchment on which you will be depending. It is easy to miss the stinky sewage pouring into the mangroves and beach and the tired noisy diesel generators running 24/7, when you are on the real estate tour and looking at the pretty beaches and pools. While you are at it, ask why Green Globe has decertified the resort.
We recomend not signing any contract that references a "Third Party Access Agreement" or an "Owners Services Agreement" as both of these documents severely restict your property rights, including access to the property, the right to install solar & water, the right to hire your own landscaper, maid, painter, construction company, or any other worker. With their exclusive contracts, everything goes through OGI, and every upgrade or improvement you seek to do will be subject to their whim and tacked on fees. Don't believe them when they tell you almost everyone signed these contracts - only a very small minority did.
If you do go ahead with your purchase, congratulations! Red Frog Resort is a beautiful location despite the numerous problems with the management and development company, Oceans Group International. Please do change your door locks immediately upon closing, as some owners have reported that their units have been rented without their permission or knowledge. They also report that they did not even receive income from the unauthorized rental! Perhaps installing some security cameras and spotlights would also be a good idea.
A. Don't swim off the resort dock - the water has raw sewage in it and you may get sick, as others have in the past. So far, the beach side seems OK.
B. Install a good water filter/purifier. Residents and guests have gotten sick from the drinking water provided by the resort.
C. Watch out for the secuity staff. Be sure to ask why they don't wear name badges.
More info and videos are available at: www.RedFrogTruth.com a site dedicated to illuminating the truth of the situation at Red Frog Beach. The site has a couple of photos and a videos of the resort.
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